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Put in the CFA something along the lines of:

'You authorise us to work during the cooling off period. If you cancel the agreement or settle the claim during this period or at any time following an approach by the defendant or their insurer or representative then you agree to pay us for the work done at a rate of £200 per hour.'

If they settle via direct contact then bill the client. I have no compunction about doing this as they are advised about such goings on in my client care letter. They can then huff and puff regarding misrepresentations made by the insurers.

Mind you, as 18:27 says they are captured anyway.